My video in the preview displays horribly interlaced, this is odd because the footage in the timeline displays correctly and clearly as well as my original footage. What seems to be the problem, I've tried rendering with de-interlace as well, it still shows fairly bad after being rendered.

All my original footage is 1280x720, 25fps.

My settings:

Format: H.264

Range: Entire Sequence

NTSC, 1280x720, 25[fps], Progressive

AAC, 160 [kbps], 48 kHz, Stereo

VBR, 2 Pass, Target 8.00, Max 8.00 [Mbps]

Video Codec: MainConcept H.264 Video

TV Standard: NTSC

Width: 1280 px

Height: 720 px

FPS: 25Field Order: None(progressive)

Pixel Aspect Ratio: Widescreen 16:9

Profile: Main

Level: 4

Bitrate Encoding: VBR, 2 Pass

Target/Maximum Bitrate: 8

Attached Files to show ya what I mean.

Rendering an uncompressed video yeilds the same results as Media Encoder.